Six Tips For Beginner Art Investors

Steven Sulley – Founder of Woodbury House

Buying art is often seen as an intimidating endeavor reserved for those with extensive expertise and unlimited budgets, but this is simply not the case. We are already starting to see an increase in collectors from younger and underrepresented demographics. A report from Art Basel and UBS in 2021 discovered millennials were leading the way in terms of expenditure on art, with an average of $378,000, while spending by female collectors was over double the spending of their male counterparts at $410,000.

The art world is becoming more accessible, and more people are looking to purchase their first original artwork and begin building their portfolios and collections.

While there is certainly nothing difficult about finding and purchasing a piece of art you love, it may seem overwhelming to the uninitiated, and with this in mind, here are some key pieces of advice for beginning art investors to consider.

1. Understand your tastes.

Though it is, of course, important to purchase what you like, education is also the informer of taste when it comes to art. Familiarizing yourself with various movements, mediums and styles will help you make an informed decision when it comes to investing in your first piece.

There are a wealth of resources available to help you do this, including art magazines and periodicals, museums, galleries and even social media. Opening yourself up to the different kinds of art available is vital for discovering the periods or styles that are of particular interest to you personally.

Browsing art by style is a useful starting point to help you determine what you are drawn to, as well as to discover new and emerging artists.

2. Do your homework.

After you have determined which kind of art or movements appeal to you most, it is vital that you do your research and due diligence so you can be confident when the time comes to invest.

Research the artists who are of particular interest to you, whether through their websites, past exhibitions or social media platforms, to get a sense of their career and accomplishments. If they are represented by a gallery, it is also a good idea to reach out to them to get a better understanding of their practice and works.

Conducting research is especially important if you are looking to make your first purchase as an investment, as it will give you a better idea of the art market and reduce the risk of you overspending and therefore not maximizing the potential profit of your investment. When it comes to buying art, there is no such thing as being too informed!

3. Determine your budget.

While it is not unusual for pieces of art to sell for huge sums of money, as a new investor, there is certainly nothing wrong with setting yourself a more conservative budget. Determine a budget for yourself that is realistic and decide on the maximum amount you are willing to spend.

Doing so will enable you to make the most out of your investment and will help inform your research before you get involved, allowing you to laser-focus in on the works and artists who are within your price range.

It is also important to factor in the other costs associated with purchasing art when it comes to handling, packing and transporting the work, or other applicable taxes if you are buying internationally.

4. Consider materials and mediums.

It is worth paying attention to the different mediums on offer and the kinds of materials they use, as some works may utilize unique or rare materials that will affect the price.

The prices of artworks traditionally vary based on the materials and mediums they use; for example, a pencil drawing on paper is likely to come with a lower price tag than an acrylic artwork on canvas. This can be used to your advantage to buy an original piece at an affordable price point. Diversifying your interests into a range of mediums is a great way to begin your investment portfolio.

5. Familiarize yourself with auctions.

Auctions can be fast-paced and overwhelming to new investors, so it is important to attend several auctions whether in-person or virtually, to familiarize yourself with how they work before you make your first investment.

Attending auctions is also a great way to broaden your artistic appreciation, as they offer the chance to discover new artists and styles you may not otherwise have considered. They also present an opportunity to explore a variety of mediums to suit different tastes and budgets. Your first original artwork does not necessarily have to be a large painting, and visiting auctions will open you up to the possibility of other works such as fine art drawings, etchings and lithographs.

6. Build relationships with the experts.

Speaking to and building relationships with established experts in the art community, such as galleries and other investors and collectors, can be particularly useful for new investors. These people already possess a vast knowledge and experience when it comes to buying art, and consulting them before you make an investement could help you navigate the possible pitfalls of buying art for the first time.

While buying art can be extremely lucrative, it still comes with its challenges and a process some may deem as overwhelming. Ensuring the artwork is authentic and in good condition is one good step to take; establishing relationships with trusted experts who can assist you is another.

Ultimately, I’ve found that educating yourself is the single best chance you have to achieve any kind of success as an art investor. By doing plenty of research and learning from the experts, you can make a sound decision.

The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.

Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?